Candle closed as a bearish breakout bar. Hence bearish bias on EURGBP (for me). Projecting 0.7750 level.
You would need to see the associated tick volume bar aslo associated candles. It is a congestion zone, may look bearish at first but in a congestion are could be shorterm bull movement traditionally it is bullish if their is a lot of volume at known low price, bearish if other preceding red bars have significant rising volume, meaning the bulls mounted a last stand but the bears crushed them closing the price lower and we will see a continuation lower. If the preceding bars had low volume and then this doji appears, the Bulls have come in and the bears have weakened and it is a last gasp, a reversal is due.
Hope this helps. Post with volume if you want my idea.
Excellent, Emerald…eminently enunciated!
See how that last, huge, volume bar at the end of a two-candle down-move produced a candle with almost no body and close to the top? To me, this suggests that, by the Wyckoff rule, when a huge volume bar does not translate into an equally large candle (with more body than wick/tail, in other words), then it is a false move…
The 77.50 level is a decades-long historic landmark, and we have now come to about 100 pips within its reach; Jeremy Wagner and I have written articles highlighting an imminent reversal, purely on technical terms… I know that the Euro in itself is weaker, fundamentally, than the Pound, but a very low price may attract a move to the upside… Sometimes, you just do not need to know why: if EUR/USD moved lower but EUR/GBP higher, I would not question the divergence if there was a true bounce and would go long EUR/GBP…
In fact, I am already long… I have packed my
night case before the fire has even started, and
I will be the first out of the building, so to speak 
As I explained earlier in the thread, as well as herehttp://www.forexcrunch.com/eurgbp-cycle-window-shows-upward-mobility/, the 0.77 level is historically a major stronghold… In my analysis, a bounce off this level could be a turning window for Eur/Gbp to push back up in a major move…
Could today be the beginning of this?
I’d aire on the side of caution going long here. It just looks “too good” to me.
Pull up a monthly and check out tick volume for SEPT.
There is a ton of momentum behind this selling pressure.
I’d be looking for congestion around this level, because it’s most likely going to take time to turn this ship around. Otherwise, sellers may just slice right through.
My thoughts too. That’s some heavy move there.
Best
Hi Jake!
I agree! All moving averages on the Daily are going DOWN There is no sign of relief for this pair…
However, this (and Jeremy Wagner’s) theory has nothing to do with fundamentals or other considerations
of ordinary momentum but, simply, technical considerations…
Eur/Gbp, I argue with myself, will turn around… today’s move was insignificant, but I was just
signalling to others… For me, I am already long from many weeks ago, and just letting this one
taking care of itself to the upside… the 0.77 level, for me, is a test moment for a move to greater
heights that has nothing to do with the usual fundamentals about the Euro but only a necessary
reversal of price, which cares little for the usual logic… at least, sometimes price cares nothing
for our logic… By this very rule, all of my thinking about the price not caring about my logic
could just continue down regardless of my 0.77 ‘lowest of the low’ considerations!
But… look at AUD/NZD, how in spite of the RBNZ being so hawkish BY ALL ACCOUNTS and
being forecast to make NZD the BEST BUY of 2014 actually ended up giving NZD buyers
a blood bath and sending the Kiwi tumbling like potato prices in the Great Irish Famine…
So I stop believing in logic and thinking the unthinkable, and the 0.77 area, based on price,
is for me a major possibility (and probability) of reversal for this pair, regardless of all
other (fundamental) logic, which would tell me ‘no, stop, you are talking nonsense’!
So I am 99% sure that this is exactly what will happen, with Euro/Pound hitting the bottom
of bottoms and then going… ha! Time for a huge and cheap buy!!!
Hey, what level did you buy long position EUR/GBP at? also where will you take profit? It seems the sentiment out there is to buy Euros for the small corrective bounce before the continuation of the downtrend. Just seems a bit risky at the moment after all of draghis comments but hey no guts no glory, i always say the higher the risk the higher the reward, good luck.
Hi Mrquickbuy!
I agree with your every word!
As per my article
EUR/GBP Cycle Window shows upward mobility | Forex Crunch ,
the target is roughly 0.85…
I bought the pair at 0.80, expecting
either a move up or first an inflection down
to or toward 0.77-0.7750…
See my latest thoughts on EUR/GBP, based on volume in the past week…
What do [B]YOU[/B] think?
Does this look like a market that waits for events? Draghi’s announced QE had long been priced in…
Just look at EUR/GBP today, pre- and post-ECB rate decision and Draghi press conference…70+ pips up…
You need to charge your phone!! lol That long EUR/GBP starting to go your way?
Yes, finally!!
'Phone is recharging
Congrats! How high up do you think it could go?
Thank you, PipDiddy… As it says a couple of posts up, roughly 0.85…
Hello all…
I just saw that my third entry order (BUY) for this pair has been closed in the money, being the third of three that have been triggered and closed in the money since Monday evening (this week)…
Total: 120 pips!!!
Here is how I did it!
0.7925 open; close (net limit) +40 pips;
0.7950 open; close (net limit) + 40 pips;
0.7975 open; close (net limit) + 40 pips.
The 40-pip target was based on the Daily chart ATR (Average True Range) for this pair…
Cheers!